BitherCash: New Bitconnect-Like Crypto Loan Platform with BEC Tokens?
A new Ponzi scheme is operating in a similar way as Bitconnect was doing in the past. BitherCash, the name of this fraudulent scheme, has been reviewed by BehindMLM on November 10.
According to the report, the company does not provide any information about who owns or runs the business. However, this seems to go against their own tagline, which says: ‘real people, real project.’ The website was registered back on November 7, 2017.
Alexa shows that most of its website traffic comes from Pakistan. Indeed, marketing videos related to BitherCash show a Pakistani audience as well. Nevertheless, there is a possibility for the owners of the site to be from India rather than from Pakistan.
In addition to it, BehindMLM shows the screenshot of a video in which it is possible to see the face of BitherCash CEO during an interview. However, the video has been already deleted from the internet. This is clearly something very suspicious. If the CEO has no problems about being shown, why did they delete the video that featured him?
Companies that offer services on the internet and that ask users funds should always show who runs or owns that company. Is not an easy task to give away funds and be responsible for them. In the past, several fraudulent companies promised juicy returns to investors, and the founders ended up escaping with the funds.
BitherCash did not provide retailable products or services to its users. Affiliates were able to start profiting with this company. Users started by investing BEC points with the promise of having a very high ROI. The BEC virtual currency was sold to investors for 40 cents each of them.
Each of the affiliates could make an investment of $100 dollars and receive 1.5% a month for a period of 10 months. The next investment level is $500 dollars for users to receive a 2% interest during a period of 8 months. In this way, the highest investment level requires the user to invest $50,000 and receive 8% in 6 months.
Nevertheless, the returns are paid using BEC points. The currency could only be converted to real money using BitherCash’s internal BitherX exchange.
Affiliates are able to earn 10% of the funds invested by those users recruited personally. Moreover, there are residual commissions that are paid using a binary compensation structure. This structure allows the affiliate to receive extra commissions. The positions in this 4-level structure are filed by direct and indirect recruitment of affiliates.
Affiliates will be paid a specific percentage according to the investment they make in the platform. The higher the funds placed, the higher the return.
There were several BitConnect lending clones in the market. And BitherCash is just one of them. Nevertheless, the ROI rate seems to be lower compared to other similar schemes.
BitherCash describes its business model in the following way:
“If an investor lends 100 BEC tokens at $1 and after one year the price of BEC token is $30, then they don’t get $100 back (like all other traditional lending companies), instead they get their 100 BEC tokens back valued at $30 each, so their $100 investment in one year turns into $3000 and to top it all up we pay our investors an interest for lending them their tokens to BitherCash.”
In this way, the founders of this fraudulent company are able to take the funds invested by the users and pay a compensation plan that attracts users. The scheme and project will last as long as there are new users ready to place their funds in the platform. It is important to mention that outside the platform BEC tokens are worth $0 dollars.
As it happened with BitConnect and other similar scams, the platform will end up closing its doors and take users’ funds with them.